In a report released yesterday, James Feldman from Wells Fargo maintained a Hold rating on Park Hotels & Resorts (PK – Research Report), with a price target of $10.00.
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James Feldman has given his Hold rating due to a combination of factors related to Park Hotels & Resorts’ recent activities and market conditions. The company has made progress on its $350 million disposition program by selling the Hyatt Centric Fisherman’s Wharf for $80 million, which aligns with its strategy to reshape its portfolio by exiting underperforming urban leisure properties. This transaction is seen positively as it demonstrates PK’s commitment to its strategic goals, yet the overall transaction market remains challenging, which poses execution risks.
Furthermore, the proceeds from the sale are intended to fund significant capital expenditures, with a focus on high-return projects such as those in Miami, Waikiki, and New Orleans. Although PK has also repurchased shares, management has emphasized that funding current capital expenditures is the priority. While the disposition and reinvestment strategy is encouraging, the uncertain market conditions and the need for careful execution underpin the Hold rating, reflecting a cautious but optimistic outlook.
In another report released on May 16, Evercore ISI also downgraded the stock to a Hold with a $13.00 price target.
PK’s price has also changed moderately for the past six months – from $15.050 to $10.260, which is a -31.83% drop .